On December 31, 2019, Skysong Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Skysong to make annual payments of $8,162 at the beginning of each year of the lease, starting December 31, 2019. The machine has an estimated useful life of 6 years and a $5,100 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Skysong uses the straight-line method of depreciation for all of its plant assets. Skysong's incremental borrowing rate is 9%, and the lessor's implicit rate is unknown. Click here to view factor tables. Your answer is correct. What type of lease is this? This is a/an finance lease. eTextbook and Media List of Accounts Your answer is incorrect. Compute the present value of the lease payments. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to decimal places e.g. 5,275.) Present value of the lease payments $ $ X Your answer is incorrect. Prepare all necessary journal entries for Skysong for this lease through December 31, 2020. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit (To record the lease) (To record first lease payment) (To record amortization of the right-of-use asset) (To record interest expense) 7% 9% TABLE 1 Future Value of 1 (n) Periods 4% 5% 0 1.00000 1.00000 1 1.04000 1.05000 2 1.08 160 1.10250 3 1.12486 1.15763 4 1.16986 1.21551 5 1.21665 1.27628 6 1.26532 1.34010 7 1.31593 1.40710 8 1.36857 1.47746 9 1.42331 1.55133 10 1.48024 1.62889 11 1.53945 1.71034 1.60103 1.79586 13 1.66507 1.88565 14 1.73168 1.97993 15 1.80094 2.07893 16 1.87298 2.18287 17 1.94790 2.29202 18 2.02582 2.40662 19 2.10685 2.52695 20 2.19112 2.65330 6% 1.00000 1.06000 1.12360 1.19102 1.26248 1.33823 1.41852 1.50363 1.59385 1.68948 1.79085 1.89830 2.01220 2.13293 2.26090 2.39656 2.54035 2.69277 2.85434 3.02560 3.20714 1.00000 1.07000 1.14490 1.22504 1.31080 1.40255 1.50073 1.60578 1.71819 1.83846 1.96715 2.10485 2.25219 2.40985 2.57853 2.75903 2.95216 3.15882 3.37993 3.61653 3.86968 8% 1.00000 1.08000 1.16640 1.25971 1.36049 1.46933 1.58687 1.71382 1.85093 1.99900 2.15892 2.33164 2.51817 2.71962 2.93719 3.17217 3.42594 3.70002 3.99602 4.31570 4.66096 1.00000 1.09000 1.18810 1.29503 1.41158 1.53862 1.67710 1.82804 1.99256 2.17189 2.36736 2.58043 2.81267 3.06581 3.34173 3.64248 3.97031 4.32763 4.71712 5.14166 5.60441 10% 11% 1.00000 1.00000 1.10000 1.11000 1.21000 1.23210 1.33100 1.36763 1.46410 1.51807 1.61051 1.68506 1.77156 1.87041 1.94872 2.07616 2.14359 2.30454 2.35795 2.55803 2.59374 2.83942 2.85312 3.15176 3.13843 3.49845 3.45227 3.88328 3.79750 4.31044 4.17725 4.78459 4.59497 5.31089 5.05447 5.89509 5.55992 6.54355 6.11591 7.26334 6.72750 8.06231 12% 1.00000 1.12000 1.25440 1.40493 1.57352 1.76234 1.97382 2.21068 2.47596 2.77308 3.10585 3.47855 3.89598 4.36349 4.88711 5.47357 6.13039 6.86604 7.68997 8.61276 9.64629 15% 1.00000 1.15000 1.32250 1.52088 1.74901 2.01136 2.31306 2.66002 3.05902 3.51788 4.04556 4.65239 5.35025 6.15279 7.07571 8.13706 9.35762 10.76126 12.37545 14.23177 16.36654 12 TABLE 2 Future Value of an Annuity of 1 (n) Payments 5% 6% 7% 8% 9% 10% 11% 12% 15% 1 1.00000 1.00000 1.00000 1.0000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 2 2.04000 2.05000 2.06000 2.0700 2.08000 2.09000 2.10000 2.11000 2.12000 2.15000 3 3.12160 3.15250 3.18360 3.2149 3.24640 3.27810 3.31000 3.34210 3.37440 3.47250 4 4.24646 4.31013 4.37462 4.4399 4.50611 4.57313 4.64100 4.70973 4.77933 4.99338 5 5.41632 5.52563 5.63709 5.7507 5.86660 5.98471 6.10510 6.22780 6.35285 6.74238 6 6.63298 6.80191 6.97532 7.1533 7.33592 7.52334 7.71561 7.91286 8.11519 8.75374 7 7.89829 8.14201 8.39384 8.6540 8.92280 9.20044 9.48717 9.78327 10.08901 11.06680 8 9.21423 9.54911 9.89747 10.2598 10.63663 11.02847 11.43589 11.85943 12.29969 13.72682 9 10.58280 11.02656 11.49132 11.9780 12.48756 13.02104 13.57948 14.16397 14.77566 16.78584 10 12.00611 12.57789 13.18079 13.8164 14.48656 15.19293 15.93743 16.72201 17.54874 20.30372 11 13.48635 14.20679 14.97164 15.7836 16.64549 17.56029 18.53117 19.56143 20.65458 24.34928 12 15.02581 15.91713 16.86994 17.8885 18.97713 20.14072 21.38428 22.71319 24.13313 29.00167 13 16.62684 17.71298 18.88214 20.1406 21.49530 22.95339 24.52271 26.21164 28.02911 34.35192 14 18.29191 19.59863 21.01507 22.5505 24.21492 26.01919 27.97498 30.09492 32.39260 40.50471 15 20.02359 21.57856 23.27597 25.1290 27.15211 29.36092 31.77248 34.40536 37.27972 47.58041 16 21.82453 23.65749 25.67253 27.8881 30.32428 33.00340 35.94973 39.18995 42.75328 55.71747 17 23.69751 25.84037 28.21288 30.8402 33.75023 36.97351 40.54470 44.50084 48.88367 65.07509 18 25.64541 28.13238 30.90565 33.9990 37.45024 41.30134 45.59917 50.39593 55.7497275.83636 19 27.67123 30.53900 33.75999 37.3790 41.44626 46.01846 51.15909 56.93949 63.43968 88.21181 20 29.77808 33.06595 36.78559 40.9955 45.76196 51.16012 57.27500 64.20283 72.05244 102.44358 TABLE 3 Present Value of 1 8% Periods 1 2 3 4 5 4% .96154 .92456 .88900 .85480 .82193 5 6 7 8 9 10 .79031 .75992 .73069 .70259 .67556 5% 95238 .90703 .86384 .82270 .78353 .74622 .71068 .67684 .64461 .61391 .58468 .55684 .53032 .50507 ,48102 .45811 43630 .41552 39573 .37689 6% .94340 .89000 .83962 .79209 .74726 .70496 .66506 .62741 .59190 .55839 .52679 .49697 .46884 .44230 .41727 39365 .37136 35034 133051 .31180 7% 0.93458 0.87344 0.81630 0.76290 0.71299 0.66634 0.62275 0.58201 0.54393 0.50835 0.47509 0.44401 0.41496 0.38782 0.36245 0.33873 0.31657 0.29586 0.27615 0.25842 92593 .85734 .79383 .73503 .68058 .63017 .58349 .54027 50025 .46319 .42888 39711 36770 34046 .31524 .29189 27027 25025 .23171 21455 9% 91743 .84168 .77218 .70843 .64993 .59627 .54703 .50187 .46043 .42241 .38753 .35554 .32618 .29925 .27454 .25187 23107 21199 .19449 .17843 10% .90909 .82645 .75132 .68301 .62092 56447 .51316 .46651 .42410 .38554 .35049 .31863 .28966 .26333 .23939 .21763 .19785 .17986 .16351 .14864 11% 90090 .81162 .73119 .65873 .59345 .53464 .48166 .43393 .39092 .35218 .31728 .28584 .25751 23199 .20900 .18829 .16963 .15282 .13768 .12403 12% .89286 .79719 .71178 .63552 .56743 .50663 .45235 .40388 .36061 .32197 .28748 .25668 .22917 20462 .18270 .16312 .14564 .13004 .11611 .10367 15% .86957 .75614 .65752 57175 .49718 .43233 37594 .32690 .28426 .24719 .21494 .18691 .16253 .14133 .12289 .10687 .09293 .08081 .07027 ,06110 11 12 13 14 15 16 17 18 19 20 .64958 .62460 .60057 .57748 .55526 .53391 .51337 .49363 .47464 .45639 15% TABLE4 Present Value of an Annuity of 1 (n) Payments 4% 5% 6% 7% 1 .96154 .95238 .94340 0.93458 2 1.88609 1.85941 1.83339 1.80802 3 2.77509 2.72325 2.67301 2.62432 4 3.62990 3.54595 3.46511 3.38721 5 4.45182 4.32948 4.21236 4.10020 6 5.24214 5.07569 4.91732 4.76654 7 6.00205 5.78637 5.58238 5.38929 8 6.73274 6.46321 6.20979 5.97130 9 7.43533 7.10782 6.80169 6.51523 10 8.11090 7.72173 7.36009 7.02358 11 8.76048 8.30641 7.88687 7.49867 12 9.38507 8.86325 8.38384 7.94269 13 9.98565 9.39357 8.85268 8.35765 10.56312 9.89864 9.29498 8.74547 15 11.11839 10.37966 9.71225 9.10791 16 11.65230 10.83777 10.10590 9.44665 17 12.16567 11.27407 10.47726 9.76322 18 12.65930 11.68959 10.82760 10.05909 19 13.13394 12.08532 11.15812 10.33560 20 13.59033 12.46221 11.46992 10.59401 8% 9% 10% 11% .92593 .91743 .90909 .90090 1.78326 1.75911 1.73554 1.71252 2.57710 2.53130 2.48685 2.44371 3.31213 3.23972 3.16986 3.10245 3.99271 3.88965 3.79079 3.69590 4.62288 4.48592 4.35526 4.23054 5.20637 5.03295 4.86842 4.71220 5.74664 5.53482 5.33493 5.14612 6.24689 5.99525 5.75902 5.53705 6.71008 6.41766 6.14457 5.88923 7.13896 6.80519 6.49506 6.20652 7.53608 7.16073 6.81369 6.49236 7.90378 7.48690 7.10336 6.74987 8.24424 7.78615 7.36669 6.98187 8.55948 8.06069 7.60608 7.19087 8.85137 8.31256 7.82371 7.37916 9.12164 8.54363 8.02155 7.54879 9.37189 8.75563 8.2 0141 7.70162 9.60360 8.95012 8.36492 7.83929 9.81815 9.12855 8.51356 7.96333 12% .89286 .86957 1.69005 1.62571 2.40183 2.28323 3.03735 2.85498 3.60478 3.35216 4.11141 3.78448 4.56376 4.16042 4.96764 4.48732 5.32825 4.77158 5.650225.01877 5.93770 5.23371 6.19437 5.42062 6.42355 5.58315 6.62817 5.72448 6.81086 5.84737 6.97399 5.95424 7.11963 6.04716 7.24967 6.12797 7.36578 6.19823 7.46944 6.25933